Name: Anadarko Petroleum Corp. (NYSE:APC) | Cash Flow Statement
Creator: Stock Analysis on Net

Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

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Anadarko Petroleum Corp., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012
Net income (loss)	(2,808)	(6,812)	(1,563)	941)	2,445)
Depreciation, depletion, and amortization	4,301)	4,603)	4,550)	3,927)	3,964)
Deferred income taxes	(1,238)	(3,152)	(105)	90)	164)
Dry hole expense and impairments of unproved properties	613)	2,267)	1,245)	864)	1,544)
Impairments	227)	5,075)	836)	794)	389)
(Gains) losses on divestitures, net	757)	1,022)	(1,891)	470)	71)
Loss on early extinguishment of debt	155)	—)	—)	—)	—)
Total (gains) losses on derivatives, net	292)	(100)	207)	(392)	(308)
Operating portion of net cash received (paid) in settlement of derivative instruments	267)	335)	371)	85)	685)
Other	342)	320)	327)	246)	232)
Tronox-related contingent liability	—)	(5,210)	4,360)	850)	(250)
(Increase) decrease in accounts receivable	677)	(2)	103)	719)	(271)
Increase (decrease) in accounts payable and accrued expenses	(669)	(995)	97)	148)	(452)
Other items, net	84)	772)	(71)	146)	126)
Changes in assets and liabilities	92)	(5,435)	4,489)	1,863)	(847)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities	5,808)	4,935)	10,029)	7,947)	5,894)
Net cash provided by (used in) operating activities	3,000)	(1,877)	8,466)	8,888)	8,339)
Additions to properties and equipment	(3,505)	(6,067)	(9,508)	(7,721)	(7,242)
Acquisition of businesses	(1,740)	(3)	(1,527)	(473)	—)
Divestitures of properties and equipment and other assets	2,356)	1,415)	4,968)	567)	657)
Other, net	127)	(116)	(405)	(589)	(284)
Net cash used in investing activities	(2,762)	(4,771)	(6,472)	(8,216)	(6,869)
Borrowings, net of issuance costs	6,042)	4,632)	2,879)	958)	1,042)
Repayments of debt	(6,832)	(4,033)	(1,425)	(710)	(3,044)
Financing portion of net cash received (paid) for derivative instruments	(333)	(35)	(222)	—)	—)
Increase (decrease) in outstanding checks	(103)	(23)	62)	(13)	(69)
Dividends paid	(105)	(553)	(505)	(274)	(181)
Repurchase of common stock	(38)	(55)	(45)	(54)	(37)
Issuance of common stock, including tax benefit on share-based compensation awards	2,188)	34)	121)	146)	103)
Sale of subsidiary units	1,163)	187)	1,026)	724)	623)
Issuance of tangible equity units, equity component	—)	348)	—)	—)	—)
Distributions to noncontrolling interest owners	(362)	(282)	(216)	(156)	(112)
Contributions from noncontrolling interest owners	—)	—)	—)	2)	16)
Proceeds from conveyance of future hard minerals royalty revenues, net of transaction costs	413)	—)	—)	—)	—)
Payments of future hard minerals royalty revenues conveyed	(25)	—)	—)	—)	—)
Net cash provided by (used in) financing activities	2,008)	220)	1,675)	623)	(1,659)
Effect of exchange rate changes on cash	(1)	(2)	2)	(68)	(37)
Net increase (decrease) in cash and cash equivalents	2,245)	(6,430)	3,671)	1,227)	(226)
Cash and cash equivalents at beginning of period	939)	7,369)	3,698)	2,471)	2,697)
Cash and cash equivalents at end of period	3,184)	939)	7,369)	3,698)	2,471)

Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).

The financial performance of the entity between 2012 and 2016 was characterized by significant volatility, marked by a transition from steady profitability to severe losses, followed by a partial stabilization of cash flows. The most acute period of distress occurred in 2015, where massive non-cash impairments and operating losses led to a critical depletion of cash reserves.

Operating Cash Flow Trends: Net income experienced a precipitous decline, moving from a profit of 2,445 million USD in 2012 to a peak loss of 6,812 million USD in 2015. Despite these losses, net cash provided by operating activities remained robust through 2014, averaging over 8,400 million USD annually. However, 2015 saw a sharp reversal to a negative 1,877 million USD, driven largely by a 5,075 million USD impairment charge and negative deferred income taxes. A recovery began in 2016, with operating cash flow returning to a positive 3,000 million USD, although net income remained negative.
Investment and Capital Expenditure Strategy: There was a clear shift in capital allocation toward austerity and asset monetization over the five-year period. Additions to properties and equipment peaked in 2014 at 9,508 million USD but were aggressively reduced to 3,505 million USD by 2016. This reduction in capital expenditure was complemented by an increase in divestitures, which reached a peak of 4,968 million USD in 2014 and remained significant at 2,356 million USD in 2016, indicating a strategic move to liquidate assets to support liquidity.
Financing and Liquidity Management: Financing activities transitioned from a net cash outflow in 2012 to a net inflow by 2016. To counter operating deficits and fund investments, there was a marked increase in net borrowings, which rose from 1,042 million USD in 2012 to 6,042 million USD in 2016. Furthermore, 2016 saw a significant injection of capital through the issuance of common stock totaling 2,188 million USD, suggesting a reliance on external equity markets to rebuild the balance sheet after the 2015 crisis.
Cash Position and Solvency: The cash and cash equivalents balance exhibited extreme fluctuations. After reaching a high of 7,369 million USD at the end of 2014, the balance collapsed to 939 million USD by the end of 2015. This 87% decrease was a direct result of the combined impact of operating losses and continued investing outflows. By the end of 2016, the cash position recovered to 3,184 million USD, supported by reduced capital spending and increased financing inflows.

Overall, the data reflects a period of severe financial stress centered around 2015, where the entity was forced to pivot from an aggressive growth and investment phase to a defensive posture. This transition involved cutting capital expenditures, accelerating asset divestitures, and increasing leverage and equity issuance to maintain solvency.

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